Artificial Intelligence in Healthcare Market Overview:

Artificial intelligence (AI) can be defined as the science and engineering adopted to design intelligent machines, especially intelligent computer programs. AI is an intelligent system that applies various human intelligence based functions such as reasoning, learning, and problem-solving skills on different disciplines such as biology, computer science, mathematics, linguistics, psychology, and engineering. AI is widely applicable in medication management, treatment plans, and drug discovery. The global AI in healthcare market was valued at $1,441 million in 2016, and is estimated to reach at $22,790 million by 2023, registering a CAGR of 48.7% from 2017 to 2023.

The growth of the global AI in healthcare market is driven by the ability of AI to improve patient outcomes, need to increase coordination between healthcare workforce & patients, increase in adoption of precision medicine, and a notable rise in venture capital investments. In addition, rise in importance of big data in healthcare is expected to fuel the market growth. The market is expected to witness a moderate growth during the forecast period, owing to rise in adoption of AI systems. Furthermore, technological advancements in AI systems are anticipated to augment the market growth. Prospective of AI-based tools for elderly care and the untapped potential of emerging markets, such as China and India, are expected to present various opportunities for market expansion. However, an imprecise regulatory scenario and reluctance among healthcare professionals to adopt AI-based technologies are expected to hamper the market growth.

Offering Segment Review

On the basis of offering, the market is divided into hardware, software, and services. The software segment occupied the highest share in 2016, owing to continuous software innovation that caters to the requirement in the healthcare sector. The hardware segment is projected to witness the highest growth rate during the forecast period.

Based on algorithm, it is classified into deep learning, querying method, natural language processing, and context aware processing. The deep learning segment is projected to grow at the highest CAGR during the forecast period, owing to increase in use of signal reduction, data mining, and image recognition, which are integral components of most AI protocols.

Based on region, the AI in healthcare market is divided into North America, Europe, Asia-Pacific, and LAMEA. North America accounted for the largest market share in the AI in healthcare market in 2016, and is expected to retain its dominance throughout the forecast period.

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The demand for artificial intelligence systems (AI) is increasing exponentially, as these systems can accomplish challenging tasks without human intervention. These systems can enhance their perception and reasoning power, which helps the system to perform any repetitive functions carried out manually. Different technologies such as natural language processing and deep learning are used in AI systems to improve its efficiency in the healthcare market.

Presently, AI systems in the healthcare sector are used for therapy planning, retrieve patient information, and to interpret images. Eventually, these systems can replace manual involvement by providing virtual assistance for management of patient’s health, diagnostic purposes, and other tasks. The use of AI systems can help to reduce numerous human errors such as unstable hand movements during a surgery/drug delivery and to precisely measure the dosage of a pharmaceutical drug. In addition, these systems can also be used to operate on a person with minimal human supervision and monitor the health of a patient using different wearable devices. Moreover, they are used to analyze the medical records of a patient and predict disease onset.

Employment of technologically advanced products is highest in North America, owing to increase in adoption of these products and availability of capital investments to provide new ventures for the AI systems. Furthermore, rise in disposable income, growth in healthcare expenditure in the developing countries, such as China and India, and increase in adoption of AI systems contribute towards the growth of the Asia-Pacific AI market.